Privacy is probably one of the main reasons people choose to use Bitcoin for financial transactions and as a store of value. Bitcoin offers an opportunity to keep your finances free from your real-life identity and governmental authority.
However, new regulations are arriving by the day and most reputable bitcoin exchanges have implemented stringent Know-Your-Customer (KYC) protocols. If you don't take steps to maintain your anonymity, all of your transactions will be easily traceable right from your very first bitcoin purchase. At SmartMix, we want to help you protect your privacy at each stage of your transactions. These are our tips to help keep your anonymity when you first purchase Bitcoin.
- Buy bitcoin with cash
If it's possible for you, using a platform like Localbitcoins to buy bitcoins with cash is one of the most secure ways to get bitcoins without giving away any personal information. However, meeting with a stranger who knows you are carrying cash has its own risks. Make sure you choose a bitcoin seller with a good trust rating and take steps to protect your physical safety-- always meet in public and don't give them any information that can be used to identify you. Once you find a reliable source, you can skip the online search and contact them directly the next time you want to make a purchase.
- Find a bitcoin ATM
Some bitcoin ATMS require a form of identification or registration-- but not all of them. We recommend that you find one that accepts cash and prints a receipt. During the purchase process at a bitcoin ATM, you’ll usually be given the option to print a receipt or provide a receiving address. Printing a paper receipt with a unique bitcoin address for you offers the best privacy. From there you can move the bitcoin to your own wallet or address of your choosing (after mixing, of course). Use CoinATMRadar to find a bitcoin ATM near you.
- Buy bitcoin with another cryptocurrency
If you already have another cryptocurrency, staying anonymous while buying bitcoin is much easier. Many exchanges don't require verification for exchanging small crypto-toc-crypto amounts. These days, it's getting increasingly difficult to buy bitcoin without revealing your identity as part of the process. Buying with cash in person or from an ATM are usually the best options for your privacy. Fortunately, once you have your bitcoin, anonymously exchanging it for a different cryptocurrency is much simpler. At SmartMix, we want to make sure your identity remains secure every step of the way, so remember: even when you have purchased your bitcoins anonymously, mixing your bitcoin remains an important step to protect your privacy for each transaction. Stay safe and happy mixing!